U.S. BANKRUPTCY COURT Final liquidation of CSC approaches
Most of the bankrupt steel mill was already liquidated at auction last October.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
YOUNGSTOWN -- The case of CSC Ltd., a Warren steelmaker that filed for Chapter 11 bankruptcy protection in January of 2000, will be converted to Chapter 7, the final liquidation phase, by no later than April 12.
Judge William Bodoh of federal bankruptcy court here approved an agreement Thursday between CSC, its bank lenders and other creditors which set the final date. The U.S. Trustee's office will appoint a trustee when the conversion is made to oversee the liquidation of the remaining assets.
CSC, once a steel bar maker and the fourth largest industrial employer in Trumbull, Mahoning and Columbiana counties, filed for Chapter 11 bankruptcy protection in January 2001.
It stopped steel production last April and most of the plant was sold at auction in October after a search for a buyer to keep the mill operating failed.
Settlement: Judge Bodoh also agreed to pay CSC's bank lenders 38.9 percent of a $1.2 million settlement the company won in a class action price-fixing lawsuit against a graphite electrode manufacturer.
The rest, about $742,000, will be withheld until a dispute is settled between CSC's lenders and the estate of the former Copperweld Steel.
CSC was formerly known as Copperweld Steel. It filed for Chapter 11 bankruptcy protection in 1993 and was bought out of bankruptcy by the Reserve Group of Akron and renamed CSC in 1995.
The Copperweld estate is arguing that it deserves a part of the electrode lawsuit settlement because some of the price fixing took place when Copperweld still owned the company. In a previous settlement, the funds were divided between CSC and the Copperweld estate.
Investors: Don Caiazza, a former CSC president and one of eight workers still employed at the mill, said a group of Ukrainian investors is continuing to study the prospects of opening a new operation on the Warren mill site.
The group, which calls itself Warren Steel LLC, paid $6 million for CSC's continuous caster and melt shop and $1.2 million for the property, but Caiazza said its members have given him no hint as to whether they plan to reopen some part of the mill.